AI assistant
Latécoère — Earnings Release 2021
Mar 16, 2022
1472_iss_2022-03-16_3662358c-81d9-43eb-a755-89bd7cc6ae90.pdf
Earnings Release
Open in viewerOpens in your device viewer
Latécoère Reports FY 2021 Results
FY 2021 adjusted data
- § FY 2021 revenues stand at €379.8 million (-8% vs FY2020)
- § FY 2021 recurring EBITDA improved at €-31.2 million (+13% vs FY 2020) despite drop in sales
- § Recurring EBITDA in H2 2021 shows a strong improvement compared to H1 2021 (€-8.2 million vs €-23.1 million)
- § Major steps were taken to ensure that Latécoère will emerge as a stronger player from the future market recovery:
- Group's balance sheet strengthened: Capital increase of €222.4 million completed and €130 million of French State backed loans ("PGE") obtained
- Top management team strengthened – with Thierry Mootz as Group CEO and Philippe Salats as Group CFO
- Organization streamlined in terms of cost base and industrial footprint
- Bolt on acquisitions completed with TAC in Belgium, Shimtech composites and Bombardier wiring and interconnection systems both in Mexico
FY 2022 outlook
- § Double digit growth of revenues
- § Strong improvement in recurring EBITDA expected in FY 2022 driven by full impact of cost savings, increased build rates and M&A
Toulouse, March 16, 2022 – Latécoère, a tier 1 partner to major international aircraft manufacturers, today announced that its Board of Directors under the Chairmanship of Pierre Gadonneix, at their meeting on March 15, 2022, adopted and authorised the publication of Latécoère's financial statements for the twelve-month period ended December 31, 2021.
Thierry Mootz, Group Chief Executive Officer, stated: "Latécoère's performance continues to improve according to plan. In 2021 the Group has actively participated in the market consolidation. Growth will continue in 2022 driven by M&A strategy and increased build rates. Thanks to the improvement of our competitiveness, the Group is well positioned to serve the aerospace industry with innovative solutions for a sustainable world".
Adjusted results 2021
Preamble
In order to better monitor and compare its operating and financial performance, the Group has decided to disclose adjusted financial statements alongside the consolidated financial statements. The explanation of the restatements is presented in the appendix to this press release.
All figures are expressed in adjusted figures, unless otherwise stated.
| (Adjusted data - € thousand) | H1 | H2 | 2020 | H1 | H2 | 2021 |
|---|---|---|---|---|---|---|
| Revenue | 231,9 | 181,3 | 413,2 | 181,1 | 198,7 | 379,8 |
| Reported growth | -37,6% | -46,9% | -42,1% | -21,9% | 9,6% | -8,1% |
| Organic growth | -36,8% | -44,8% | -40,7% | -31,7% | -14,6% | -24,1% |
| Recurring EBITDA * | (14,0) | (21,2) | (35,2) | (23,0) | (8,2) | (31,2) |
| Recurring EBITDA margin on revenue | -6,0% | -11,7% | -8,5% | -12,7% | -4,1% | -8,2% |
| Recurring operating income | (30,8) | (36,3) | (67,1) | (39,3) | (21,6) | (61,0) |
| Recurring EBIT margin on revenue | -13,3% | -20,0% | -16,2% | -21,7% | -10,9% | -16,1% |
| Non recurring items | (34,6) | (63,7) | (98,3) | (2,8) | (7,2) | (9,9) |
| Impairment depreciation | (28,2) | (11,9) | (40,1) | |||
| Other non recurring items | (6,4) | (51,8) | (58,2) | (2,8) | (7,2) | (9,9) |
| Operating income | (65,4) | (100,0) | (165,4) | (42,1) | (28,8) | (70,9) |
| Net Cost of debt | (1,6) | (2,3) | (3,9) | (1,4) | (21,5) | (23,0) |
| Other financial income/(expense) | (10,7) | (4,7) | (15,4) | (8,4) | (7,9) | (16,3) |
| Financial result | (12,3) | (7,0) | (19,2) | (9,8) | (29,4) | (39,3) |
| Income tax | (12,1) | (2,0) | (14,1) | (1,7) | (0,5) | (2,2) |
| Net result | (89,8) | (108,9) | (198,7) | (53,6) | (58,8) | (112,4) |
| Operating free cash flows | (5,2) | (17,3) | (22,5) | (16,7) | (55,0) | (71,7) |
* Recurring EBITDA = Recurring operating income + Depreciation and amortization of tangible and intangible assets and impairment losses
* Adjusted recurring EBITDA corresponds to recurring operating income before recurring amortization, depreciation and impairment losses. Details of non-recurring items are presented in the Group's accounting principles from consolidation financial statements.
The Group's revenue reached €379.8 million for the full year 2021 compared to €413.2 million in 2020, representing a decrease of -8.1%. 2021 was impacted throughout the year by the Covid-19 crisis, whereas 2020 was affected from the second quarter only. This was compounded by the sharp drop in deliveries for the Boeing 787 (-75% compared to 2020) following the temporary halt of Boeing's assembly line. Revenue for the second half of 2021 grew 9.6% compared to the first half of the year, despite the situation with Boeing 787 (-48%).
Excluding the impact of Boeing 787 deliveries, 2021 organic revenue is down -10.5% year-on-year. On the same basis, the organic growth for the second half of 2021 is +4.6% compared to the second half of 2020, and +6.6% compared to the first half of 2021.
Recurring EBITDA for 2021 increased by €+4.0 million to reach €-31.2 million driven by continued operational improvements implemented since 2020 which more than offset the sales decrease.
Second half year Recurring EBITDA for 2021 reached €-8.2 million, a strong improvement vs second half of 2020 (€+13 million) as well as vs first half of 2021 (€+14.8 million). H2 2021 improvement is driven by the adaptation of the cost base, and by external growth.
In this context, FY 2021 recurring operating income amounted to €-61.0 million compared to €-67.1 million in the same period of 2020.
FY 2021 non-recurring items of €-9.9 million mostly derived from acquisitions' costs of €-7.9 million.
Financial result totalled to €-39.3 million in 2021 compared to €-19.2 million in 2020.
FY 2021 financial result includes net cost of debt for €-23.0 million which is primarily due to the full recording of the interest expense of the SCP shareholder loan (as it is fully repaid) for an amount of €- 16.4 million and other financial income and expenses for €-16.3 million which include unwinding of hedging portfolio for an amount of €-14,6 million.
Group net income amounted to €-112.4 million compared to €-198.7 million in 2020.
Free cash flow from operations for 2021 of €-71.7 million was driven by cash flow from operating activities before income tax paid of €-22.1 million and by a negative cash from investments of €-49.6 million including the acquisition price of TAC and Shimtech for €-32.9 million.
Net debt was €65.1 million declining by €-82.5 million as a result of free cash flow from operations of €-71.7 million, cash from capital increase (detailed hereafter) of €-222.4 million linked to recapitalisation realized in August 2021, cost of debt paid for €-18.8 million, hedging portfolio unwinding of €-14.6 million, IFRS 16 lease of €-25.5 million and Income tax paid of €-4.7 million.
At the end of December 2021, cash and cash equivalent stood at €277.6 million.
Recapitalisation and strengthening of the Group's liquidity
A capital increase of €222.4 million was completed on August 2021 and the Group obtained an additional €130 million in French State backed loans (PGE). Part of the proceeds from this recapitalisation were used to repay the shareholder loan for an amount of €52.5 million and to finance the acquisition of Technical Airborne Components. The balance of the proceeds from the capital increase will be used to achieve external growth operations (M&A) and the PGE proceeds will be used to finance the general operational financing needs of the Group, in the short and medium term.
Currency hedging
In November 2021, management decided to implement a new edging policy aiming at reducing the exposure to foreign exchange risk. This new policy will qualify under hedge accounting as per the IFRS. As a consequence, the portfolio of hedge derivatives was unwound which generated a financial loss of €-14.6 million. The new portfolio of hedge instruments in place consists of primarily €/\$ collars covering the net currency exposure for 2022 and 2023. The weighted average upper limit of these collars is of 1.15 for 2022 and of 1.18 for 2023.
Streamlining of the cost structure
Following previous announcements made, Latécoère has continued to further adjust its cost base and industrial footprint to ensure its long-term sustainability.
External growth
Three bolt-on acquisitions were completed in 2021:
- Bombardier's electrical wiring and interconnection systems business in Querétaro (Mexico) as of February 1, 2021
- Technical Airborne Components (TAC) as of May 1, 2021
- Shimtech de Mexico (SDM) as of October 1, 2021
Furthermore, in December 2021, the Group has entered into a definitive agreement to acquire a Spanish company called Malaga Aerospace, Defense & Electronics Systems (MADES) that will strengthen its interconnection systems business and defense capabilities. The acquisition is planned to be closed during Q2 2022.
Aerostructures
FY 2021 revenue in the Aerostructures division declined 23.2% from €228.4 million in 2020 to €175.5 million. Excluding B787 related deliveries, the reported growth would have been of 10%.
Revenue for the second half of 2021 was down -11.7% at €92.7 million, compared to €105.0 million in the second half of 2020. Excluding B787 related deliveries, reported sales growth would have been of around 30%.
Excluding the impact of the decline in deliveries relating to Boeing 787, the second-half of 2021 organic growth was +5.8% compared to the second half of 2020 and +12.1% compared to the first half of 2021.
2021 recurring EBITDA in the division slightly increased by €+0.9 million to reach €-16.2 million driven by continued operational improvements in a context of a low level of production.
The second half of 2021 EBITDA increased significantly by €+7.8 million to reach €-2,7 million compared to second half of 2020 driven by costs reduction. External growth realized in 2021 also contributed to the improved EBITDA, especially in the second half year of 2021.
| Aerostructures | H1 | H2 | 2020 | H1 | H2 | 2021 |
|---|---|---|---|---|---|---|
| (Adjusted data - € thousand) | ||||||
| Consolidated revenue | 123,5 | 105,0 | 228,4 | 82,8 | 92,7 | 175,5 |
| Organic growth | -41,7% | -44,5% | -43,1% | -36,5% | -27,9% | -32,5% |
| Inter-segment revenue | 11,1 | 11,5 | 22,6 | 10,2 | 9,3 | 19,5 |
| Revenue | 134,6 | 116,4 | 251,0 | 93,1 | 101,9 | 195,0 |
| Recurring EBITDA * | (6,6) | (10,5) | (17,1) | (13,5) | (2,7) | (16,2) |
| Recurring EBITDA margin on revenue | -4,9% | -9,1% | -6,8% | -14,5% | -2,7% | -8,3% |
| Recurring operating income | (15,1) | (19,5) | (34,6) | (21,0) | (12,2) | (33,2) |
| Recurring EBIT margin on revenue | -11,2% | -16,8% | -13,8% | -22,6% | -12,0% | -17,0% |
* Recurring EBITDA corresponds to recurring operating income before recurring amortization, depreciation and impairment losses. Details of non-recurring items are presented in the Group's accounting principles from consolidation financial statements.
Interconnection Systems
FY 2021 revenue of Interconnection systems increased by 10.5%, from €184.8 million in 2020 to €204.3 million. The division's second half revenue of €106.0 million represented an increase of +38.9% compared to €76.4 million in the second half of 2020. Revenue growth is mainly driven by external growth, namely the consolidation of Bombardier wiring business.
2021 recurring EBITDA for the Interconnection Systems increased by €+3.2 million to reach €-14.9 million.
Recurring EBITDA in H2 2021 increased by €5.1 million to reach €-5.5 million driven by the production level recovery.
| Interconnection Systems (Adjusted data - € thousand) |
H1 | H2 | 2020 | H1 | H2 | 2021 |
|---|---|---|---|---|---|---|
| Consolidated revenue | 108,5 | 76,4 | 184,8 | 98,3 | 106,0 | 204,3 |
| Organic growth | -30,2% | -45,2% | -37,5% | -26,3% | 3,6% | -13,7% |
| Inter-segment revenue | 0,5 | 0,7 | 1,2 | 0,5 | 0,6 | 1,1 |
| Revenue | 108,9 | 77,1 | 186,0 | 98,8 | 106,6 | 205,4 |
| Recurring EBITDA * | (7,5) | (10,6) | (18,1) | (9,5) | (5,5) | (14,9) |
| Recurring EBITDA margin on revenue | -6,9% | -13,8% | -9,7% | -9,6% | -5,1% | -7,3% |
| Recurring operating income | (15,7) | (16,8) | (32,5) | (15,6) | (12,2) | (27,8) |
| Recurring EBIT margin on revenue | -14,5% | -21,7% | -17,5% | -15,7% | -11,5% | -13,5% |
* Recurring EBITDA corresponds to recurring operating income before recurring amortization, depreciation and impairment losses. Details of non-recurring items are presented in the Group's accounting principles from consolidation financial statements.
FY 2022 outlook
For FY 2022 Latécoère expects to achieve:
- Revenue growth of more than +20% on a reported basis and in the mid to high teens on an organic basis
- A significant improvement in recurring EBITDA driven by the full impact of footprint optimization and cost cutting, despite volatility in customer demand: EBITDA is expected to be close to breakeven but still negative
- Operating free cash flow will be impacted by the remaining costs of restructuring, the increased working capital due to sales growth and by key capex to strengthen Latécoère's competitive position
About Latécoère
As a "Tier 1" international partner of the world's major aircraft manufacturers (Airbus, Boeing, Bombardier, Dassault, Embraer and Mitsubishi Aircraft), Latécoère serves aerospace with innovative solutions for a sustainable world. The Group is active in all segments of the aeronautics industry (commercial, regional, business and military aircraft), in two areas of activity:
• Aerostructures (46% of turnover): fuselage sections and doors,
_____________________________________________________
• Interconnection Systems (54% of turnover): wiring, electrical furniture and on-board equipment.
As of December 31, 2021, the Group employed 4,764 people in 14 different countries. Latécoère, a French limited company capitalised at €132,745,925 divided into 530,983,700 shares with a par value of €0.25, is listed on Euronext Paris - Compartment B, ISIN Codes: FR0000032278 - Reuters: LAEP.PA - Bloomberg: LAT.FP.
Taddeo Antoine Denry / Investor Relations +33 (0)6 18 07 83 27
Marie Gesquière / Media Relations +33 (0)6 26 48 97 98 [email protected]
Appendix – Table of content
Reconciliation of the consolidated financial statements to the adjusted financial statements
In order to better monitor and compare its operating and financial performance, the Group presents, in parallel with the consolidated financial statements, adjusted financial statements:
-
for gains and losses resulting from the exercise of hedging instruments of the Group over the period. Revenue net of purchases in US dollar currency hedged by instruments is therefore measured using the hedging rate obtained over the period. The remaining unhedged dollar exposure is measured at the average rate for the period. This result, presented as financial result in the consolidated financial statements is reclassified as revenue (operating result) in the adjusted financial statements
-
for changes in fair value, which include all changes in the fair value of derivatives not eligible for hedge accounting and relating to flows in future periods and the revaluation at the hedged rate of balance sheet positions (trade receivables and trade payables denominated in USD), the amount of which is presented in operating income. - changes in deferred taxes resulting from these items are also adjusted if necessary.
Income statement for 2021
| ('000 EURO) | Hedging Consolidated income |
Adjusted income statement | ||
|---|---|---|---|---|
| statement December 31, 2021 |
Exchange rate result |
Change in fair value |
December 31, 2021 | |
| Revenue | 375 877 | 3 886 | 379 763 | |
| Other operating revenue | 954 | 954 | ||
| Change in inventory: work-in-progress & finished goods | -9 878 | -9 878 | ||
| Raw material, Other Purchases & external charges | -239 485 | -239 485 | ||
| Personnel expenses | -158 432 | -158 432 | ||
| Taxes | -3 818 | -3 818 | ||
| Amortization | -29 814 | -29 814 | ||
| Net operating provisions charge | -12 395 | -12 395 | ||
| Net depreciation of current assets | -678 | -678 | ||
| Other operating income | 13 621 | -839 | 12 782 | |
| Other operating expenses | 12 | 12 | ||
| RECURRING OPERATING INCOME | -64 035 | 3 886 | -839 | -60 988 |
| Operating Income / Sales | -17,04% | -16,06% | ||
| Other non-recurring operating income | 15 551 | 15 551 | ||
| Other non-recurring operating expenses | -25 476 | -25 476 | ||
| OPERATING INCOME | -73 959 | 3 886 | -839 | -70 912 |
| Net Cost of debt | -22 953 | -22 953 | ||
| Foreign Exchange gains/losses | -9 263 | -3 886 | -422 | -13 571 |
| Change in fair value of financial derivative instruments | 141 | -141 | 0 | |
| Other financial incomes and expenses | -2 741 | -2 741 | ||
| FINANCIAL RESULT | -34 815 | -3 886 | -563 | -39 265 |
| Income tax | -2 200 | -2 200 | ||
| NET RESULT FOR THE PERIOD | -110 975 | 0 | -1 402 | -112 377 |
| • Of which, Owners of the parent | -110 975 | 0 | -1 402 | -112 377 |
| • Of which, Non-controlling interests | 0 | 0 | 0 | 0 |
Income statement for 2020
| En milliers d'euros | Compte de résultat | Couverture de change | |||
|---|---|---|---|---|---|
| consolidé 31/12/2020 |
Résultat de change |
Variation de juste valeur |
Compte de résultat ajusté 31/12/2020 |
||
| Chiffre d'affaires | 413 232 | 413 232 | |||
| Autres produits de l'activité | 497 | 497 | |||
| Production stockée | -24 426 | -24 426 | |||
| Achats consommés et charges externes | -263 544 | -263 544 | |||
| Charges de personnel | -158 200 | -158 200 | |||
| Impôts et taxes | -5 940 | -5 940 | |||
| Dotations aux amortissements et pertes de valeur | -31 879 | -31 879 | |||
| Dotations nettes aux provisions d'exploitation | -12 246 | -12 246 | |||
| Dotations nettes aux actifs circulants | 155 | 155 | |||
| Autres produits | 13 486 | 7 416 | 20 902 | ||
| Autres charges | -5 615 | -5 615 | |||
| RESULTAT OPERATIONNEL COURANT | -74 478 | 0 | 7 416 | -67 062 | |
| Résultat opérationnel / chiffre d'affaires | -18,02% | -16,23% | |||
| Autres produits opérationnels non courants | 4 196 | 4 196 | |||
| Autres charges opérationnelles non courantes | -102 500 | -102 500 | |||
| RESULTAT OPERATIONNEL | -172 782 | 0 | 7 416 | -165 366 | |
| Coût de l'endettement financier net | -3 854 | -3 854 | |||
| Gains et pertes de change | -13 470 | -342 | -13 812 | ||
| Gains et pertes latents sur instruments financiers dérivés | 16 240 | -16 240 | 0 | ||
| Autres produits et charges financières | -1 574 | -1 574 | |||
| RESULTAT FINANCIER | -2 657 | 0 | -16 582 | -19 239 | |
| Impôts sur les bénéfices | -14 127 | -14 127 | |||
| RESULTAT NET | -189 566 | 0 | -9 166 | -198 732 | |
| • dont attribuable aux propriétaires de la société mère | -189 566 | 0 | -9 166 | -198 732 | |
| • dont attribuable aux participations ne donnant pas le contrôle | 0 | 0 | 0 | 0 |
Consolidated financial statements (IFRS)
Consolidated Income statement
| ('000 EURO) | Dec 31, 2021 | Dec 31, 2020 |
|---|---|---|
| Revenue | 375 877 | 413 232 |
| Other operating revenue | 954 | 497 |
| Change in inventory: work-in-progress & finished goods | -9 878 | -24 426 |
| Raw material, Other Purchases & external charges | -239 485 | -263 544 |
| Personnel expenses | -158 432 | -158 200 |
| Taxes | -3 818 | -5 940 |
| Amortization | -29 814 | -31 879 |
| Net operating provisions charge | -12 395 | -12 246 |
| Net depreciation of current assets | -678 | 155 |
| Other operating income | 13 621 | 13 486 |
| Other operating expenses | 12 | -5 615 |
| RECURRING OPERATING INCOME | -64 035 | -74 478 |
| Other non-recurring operating income | 15 551 | 4 196 |
| Other non-recurring operating expenses | -25 476 | -102 500 |
| OPERATING INCOME | -73 959 | -172 783 |
| Net Cost of debt | -22 953 | -3 854 |
| Foreign Exchange gains/losses | -9 263 | -13 470 |
| Change in fair value of financial derivative instruments | 141 | 16 240 |
| Other financial incomes and expenses | -2 741 | -1 574 |
| FINANCIAL RESULT | -34 815 | -2 657 |
| Income tax | -2 200 | -14 127 |
| NET RESULT FOR THE PERIOD | -110 975 | -189 566 |
| • Of which, Owners of the parent | -110 975 | -189 566 |
| • Of which, Non-controlling interests | 0 | 0 |
Consolidated Balance sheet
| ('000 EURO) | ||
|---|---|---|
| Dec 31, 2021 | Dec 31, 2020 | |
| Goodwill | 16 431 | 0 |
| Intangible assets | 67 541 | 56 022 |
| Tangible assets | 155 433 | 154 155 |
| Other financial assets | 5 105 | 4 291 |
| Deferred tax assets | 913 | 684 |
| Financial derivative instruments | 4 299 | 0 |
| Other non-current assets | 775 | 129 |
| TOTAL NON-CURRENT ASSETS | 250 497 | 215 282 |
| Inventories | 124 298 | 115 122 |
| Accounts receivable | 85 771 | 65 269 |
| Tax receivable | 9 829 | 11 509 |
| Financial derivative instruments | 2 574 | 3 347 |
| Other current assets | 1 613 | 1 816 |
| Cash & Cash Equivalents | 277 659 | 77 614 |
| TOTAL CURRENT ASSETS | 501 746 | 274 676 |
| TOTAL ASSETS | 752 243 | 489 957 |
| ('000 EURO) | Dec 31, 2021 | Dec 31, 2020 |
|---|---|---|
| Share capital | 132 746 | 189 637 |
| Share premium | 326 064 | 213 658 |
| Treasury stock | -477 | -455 |
| Other reserves | -196 695 | -176 119 |
| Derivatives future cash flow hedges | 323 | 509 |
| Group net result | -110 975 | -189 566 |
| EQUITY ATTRIBUTABLE TO PARENT OWNERS | 150 986 | 37 664 |
| NON-CONTROLLING INTERESTS | 0 | 0 |
| TOTAL EQUITY | 150 986 | 37 664 |
| Loans and bank borrowings | 325 453 | 215 546 |
| Refundable Advances | 20 886 | 22 359 |
| Employee benefits | 16 060 | 16 294 |
| Non-current provisions | 25 281 | 26 445 |
| Deferred tax liabilities | 3 012 | 29 |
| Financial derivative instruments | 4 568 | 0 |
| Other non-current liabilities | 6 297 | 3 650 |
| TOTAL NON-CURRENT LIABILITIES | 401 557 | 284 323 |
| Loans and bank borrowings (less than 1 year) | 17 353 | 9 707 |
| Refundable Advances | 2 966 | 2 254 |
| Current provisions | 15 046 | 18 096 |
| Accounts payable | 122 729 | 89 480 |
| Income tax liabilities | 1 811 | 2 745 |
| Contracts liabilities | 33 700 | 38 982 |
| Other current liabilities | 4 262 | 3 844 |
| Financial derivative instruments | 1 832 | 2 863 |
| TOTAL CURRENT LIABILITIES | 199 700 | 167 970 |
| TOTAL LIABILITIES | 601 257 | 452 293 |
| TOTAL EQUITY & LIABILITIES | 752 243 | 489 957 |
Consolidated cash flow statement
| ('000 EURO) | Dec 31, 2021 | Dec 31, 2020 |
|---|---|---|
| Dec 31, 2021 | ||
| Net result for the period | -110 975 | -189 566 |
| Adjustments related to non-cash activities : | ||
| Depreciation and provisions | 26 153 | 85 126 |
| Fair value gains/losses | -20 | -16 240 |
| Net (gains)/losses on disposal of assets | 200 | 116 |
| Other non-cash items | 240 | 770 |
| Others (*) | 15 378 | 675 |
| CASH FLOWS AFTER COST OF DEBT AND INCOME TAXES | -69 024 | -119 119 |
| Income taxes | 2 200 | 14 127 |
| Net Cost of debt | 20 795 | 3 854 |
| CASH FLOWS BEFORE COST OF DEBT AND INCOME TAXES | -46 029 | -101 139 |
| Changes in inventories net of provisions | 14 419 | 57 799 |
| Changes in client and other receivables net of provisions | -13 240 | 93 490 |
| Changes in suppliers and other payables | 22 760 | -60 098 |
| Income tax paid | -4 710 | -2 628 |
| CASH FLOWS FROM OPERATING ACTIVITIES | -26 801 | -12 575 |
| Effect of changes in group structure (**) | -32 926 | 51 |
| Purchase of tangible and intangible assets (including changes in payables to fixed asset suppliers) | -16 045 | -12 687 |
| Purchase of financial assets | -941 | 0 |
| Increase (decrease) in loans and advances made | 248 | -583 |
| Proceeds from sale of tangible and intangible assets | 97 | 669 |
| Dividends received | 0 | 3 |
| CASH FLOWS FROM INVESTING ACTIVITIES | -49 567 | -12 547 |
| Proceeds from issue of shares | 221 139 | 0 |
| Purchase or disposal of treasury shares | -22 | 1 388 |
| Proceeds from borrowings | 129 670 | 124 362 |
| Repayments of borrowings | -36 162 | 0 |
| Repayments of lease liabilities Financial interest paid |
-5 911 -18 636 |
-5 817 -3 761 |
| Flows from refundable advances | -761 | -846 |
| Other flows from financing operation (***) | -13 291 | -45 516 |
| CASH FLOW FROM FINANCING ACTIVITIES | 276 025 | 69 809 |
| Effects of exchange rate changes | 375 | -860 |
| INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 200 031 | 43 827 |
| Opening cash and cash equivalents position | 77 589 | 33 762 |
| Closing cash and cash equivalents position | 277 620 | 77 589 |
(*) In 2021, reclassification as flows from financing activities mainly relating to accrued interest on repayable advances (+€1.6m) and the impact of the unwinding of the hedging portfolio (**) Composed of the acquisition price of Technical Airborne Components (TAC) net of cash acquired for -€31.4 million and the acquisition of Shimtec de Mexico for -€1.6 million (***) of which the impact of the unwinding of the hedging portfolio for -€14.6m
Glossary
Organic Growth
Organic growth excludes EUR/USD currency impacts (by applying a constant exchange rate for the periods considered) and by applying a constant Group structure.
Recurring operating income
In order to better reflect the current economic performance, the Group uses a sub-total named "recurring operating income" which excludes from operating income, non-recurring items (income or expenses) which are inherently difficult to predict due to their unusual, irregular or non-recurring nature. Details of non-recurring items are presented in the Group's accounting principles applied to consolidatedfinancial statements.
EBITDA
EBITDA corresponds to operating income before depreciation, amortization, and impairment losses.
Recurring EBITDA
Recurring EBITDA corresponds to recurring operating income before recurring amortization, depreciation and impairment losses. Details of non-recurring items are presented in the Group's accounting principles from consolidation financial statements.
Operating free cash flow
Operating free cash flow corresponds to cash flow from operating activities and from investing activities excluding income tax paid.
Net debt
Net debt corresponds to loans and bank borrowings (over one year) and loans and bank borrowings (less than one year) which include factoring and bank overdrafts less cash and cash equivalents. Net debt also includes financial debt from finance lease contracts.